ALEXANDRIA, Va. — One month after a judge declared Google’s search engine an illegal monopoly, the tech giant faces another antitrust lawsuit that threatens to break up the company, this time over its advertising technology. 

The Justice Department, joined by a coalition of states, and Google each made opening statements Monday to a federal judge in Alexandria, Virginia, who will decide whether Google holds a monopoly over online advertising technology. 

The regulators contend that Google built, acquired and maintains a monopoly over the technology that matches online publishers to advertisers. Dominance over the software on both the buy side and the sell side of the transaction enables Google to keep as much as 36 cents on the dollar when it brokers sales between publishers and advertisers, the government contends. 

They allege that Google also controls the ad exchange market, which matches the buy side to the sell side. 

“One monopoly is bad enough. But a trifecta of monopolies is what we have here,” Justice Department lawyer Julia Tarver Wood said during her opening statement. 

Google says the government’s case is based on an internet of yesteryear, when desktop computers ruled and internet users carefully typed precise World Wide Web addresses into URL fields. Advertisers now are more likely to turn to social media companies like TikTok or streaming TV services like Peacock. 

In her opening statement, Google lawyer Karen Dunn likened the government’s case to a “time capsule with a Blackberry, an iPod and a Blockbuster video card.” 

Dunn said Supreme Court precedents warn judges about “the serious risk of error or unintended consequences” when dealing with rapidly emerging technology and considering whether antitrust law requires intervention. She also warned that any action taken against Google won’t benefit small businesses but will simply allow other tech behemoths like Amazon, Microsoft and TikTok to fill the void. 

According to Google’s annual reports, revenue has declined in recent years for Google Networks, the division of the Mountain View, California-based tech giant that includes such services as AdSense and Google Ad Manager that are at the heart of the case, from $31.7 billion in 2021 to $31.3 billion in 2023. 

The case will now be decided by U.S. District Judge Leonie Brinkema, who is best known for high-profile terrorism trials including that of Sept. 11 defendant Zacarias Moussaoui. Brinkema, though, also has experience with highly technical civil trials, working in a courthouse that sees an outsize number of patent infringement cases. 

The Virginia case comes on the heels of a major defeat for Google over its search engine. A judge in the District of Columbia declared the search engine a monopoly, maintained in part by tens of billions of dollars Google pays each year to companies like Apple to lock in Google as the default search engine presented to consumers when they buy iPhones and other gadgets. 

And in December, a judge declared Google’s Android app store a monopoly in a case brought by a private gaming company. 

In the search engine case, the judge has not yet imposed any remedies. The government hasn’t offered its proposed sanctions, though there could be scrutiny over whether Google should be allowed to continue to make exclusivity deals that ensure its search engine is consumers’ default option. 

Peter Cohan, a professor of management practice at Babson College, said the Virginia case could potentially be more harmful to Google because the obvious remedy would be requiring it to sell off parts of its ad tech business that generate billions of dollars in annual revenue. 

“Divestitures are definitely a possible remedy for this second case,” Cohan said “It could be potentially more significant than initially meets the eye.” 

Google is also facing intensifying pressure over its ad tech business across the Atlantic. British competition regulators last week accused the company of abusing its dominance in the country’s digital ad market and giving preference to its own services. European Union antitrust enforcers carrying out their own investigation suggested last year that breaking up the company was the only way to satisfy competition concerns about its digital ad business 

In the Virginia trial, the government’s witnesses will include executives from newspaper publishers that the government contends have faced harm from Google’s practices. 

“Google extracted extraordinary fees at the expense of the website publishers who make the open internet vibrant and valuable,” government lawyers wrote in court papers. 

The government’s first witness was Tim Wolfe, an executive with Gannett Co., a newspaper chain that publishes USA Today as its flagship. Wolfe said Gannett feels like it has no choice but to continue to use Google’s ad tech products, even though the company keeps 20 cents on the dollar from every ad purchase, not even accounting for what it takes from the advertisers. He said Gannett simply can’t give up access to the huge stable of advertisers that Google brings to the ad exchange. 

On cross-examination, Wolfe acknowledged that despite Google’s supposed monopoly, Gannett was able to work with other competitors to sell its available inventory to advertisers. 

Google asserts the integration of its technology on the buy side, sell side and in the middle assures ads and web pages load quickly and enhance security. 

Google says the government’s case is improperly focused on display ads and banner ads that load on web pages accessed through a desktop computer and fails to consider consumers’ migration to mobile apps and the boom in ads placed on social media sites over the last 15 years. 

The government’s case “focuses on a limited type of advertising viewed on a narrow subset of websites when user attention migrated elsewhere years ago,” Google’s lawyers wrote in a pretrial filing. 

The trial is expected to last several weeks. 
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CUPERTINO, California — Apple on Monday charged into the artificial intelligence craze with a new iPhone lineup that marks the company’s latest attempt to latch onto a technology trend and transform it into a cultural phenomenon. 

The four different iPhone 16 models will all come equipped with special chips needed to power a suite of AI tools that Apple hopes will make its marquee product even more indispensable and reverse a recent sales slump. 

Apple’s AI features are designed to turn its often-blundering virtual assistant Siri into a smarter and more versatile sidekick, automate a wide range of tedious tasks, and pull off other crowd-pleasing tricks such as creating customized emojis within seconds. 

After receiving a standing ovation for Monday’s event, Apple CEO Tim Cook promised the AI package would unleash “innovations that will make a true difference in people’s lives.” 

But the breakthroughs won’t begin as soon as the new iPhones — ranging in price from $800 to $1,200 — hit the stores on September 20. 

Most of Apple’s AI functions will roll out as part of a free software update to iOS 18, the operating system that will power the iPhone 16 rolling out from October through December. U.S. English will be the featured language at launch, but an update enabling other languages will come out next year, according to Apple. 

It’s all part of a new approach that Apple previewed at a developers conference three months ago to create more anticipation for a next generation of iPhones amid a rare sales slump for the well-known devices. 

Since Apple’s June conference, competitors such as Samsung and Google have made greater strides in AI — a technology widely expected to trigger the most dramatic changes in computing since the first iPhone came out 17 years ago. 

Just as Apple elevated fledgling smartphones into a must-have technology in 21st-century society, the Cupertino, California, company is betting it can do something similar with its tardy arrival to artificial intelligence. 

‘Apple Intelligence’ 

To set itself apart from the early leaders in AI, the technology being baked into the iPhone 16 is being promoted as “Apple Intelligence.” Despite the unique branding, Apple’s new approach mimics many of the features already available in the Samsung Galaxy S24 released in January and the Google Pixel 9 that came out last month. 

“Apple could have waited another year for further development, but initial take up of AI- powered devices from the likes of Samsung has been encouraging, and Apple is keen to capitalize on this market,” said PP Foresight analyst Paolo Pescatore. 

As it treads into new territory, Apple is trying to preserve its longtime commitment to privacy by tailoring its AI so that most of its technological tricks can be processed on the device itself instead of relying on giant banks of computers located in remote data centers. When a task needs to connect to a data center, Apple promises it will be done in a tightly controlled way that ensures that no personal data is stored remotely. 

While corralling the personal information shared through Apple’s AI tools inherently reduces the chances that the data will be exploited or misused against a user’s wishes, it doesn’t guarantee iron-clad security. A device could still be stolen, for instance, or hacked through digital chicanery. 

For users seeking to access even more AI tools than being offered by the iPhone, Apple is teaming up with OpenAI to give users the option of farming out more complicated tasks to the popular ChatGPT chatbot. 

Although Apple is releasing a free version of its operating system to propel its on-device AI features, the chip needed to run the technology is only available on the iPhone 16 lineup and the high-end iPhone 15 models that came out a year ago. 

That means most consumers who are interested in taking advantage of Apple’s approach to AI will have to buy one of the iPhone 16 models – a twist that investors are counting on will fuel a surge in demand heading into the holiday season. 

The anticipated sales boom is the main reason Apple’s stock price has climbed by more than 10%, including a slight uptick Monday after the shares initially slipped following the showcase for the latest iPhones. 

Besides its latest iPhones, Apple also introduced a new version of its smartwatch that will include a feature to help detect sleep apnea as well the next generation of its wireless headphones, the AirPods Pro, that will be able to function as a hearing aid with an upcoming software update.
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WASHINGTON — Boeing’s beleaguered Starliner made its long-awaited return to Earth on Saturday without the astronauts who rode it up to the International Space Station, after NASA ruled the trip back too risky.

After years of delays, Starliner launched in June for what was meant to be a roughly weeklong test mission — a final shakedown before it could be certified to rotate crew to and from the orbital laboratory.

But unexpected thruster malfunctions and helium leaks en route to the ISS derailed those plans, and NASA ultimately decided it was safer to bring crewmates Butch Wilmore and Suni Williams back on a rival SpaceX Crew Dragon — though they’ll have to wait until February 2025.

The gumdrop-shaped Boeing capsule touched down softly at the White Sands Space Harbor in New Mexico, its descent slowed by parachutes and cushioned by airbags, having departed the ISS around six hours earlier.

As it streaked red-hot across the night sky, ground teams reported hearing sonic booms. The spacecraft endured temperatures of 1,650 degrees Celsius during atmospheric reentry.

NASA lavished praise on Boeing during a post-flight press conference where representatives from the company were conspicuously absent.

“It was a bullseye landing,” said Steve Stich, program manager for NASA’s commercial crew program. “The entry in particular has been darn near flawless.”

Still, he acknowledged that certain new issues had come to light, including the failure of a new thruster and the temporary loss of the guidance system.

He added it was too early to talk about whether Starliner’s next flight, scheduled for August next year, would be crewed, instead stressing NASA needed time to analyze the data they had gathered and assess what changes were required to both the design of the ship and the way it is flown.

Ahead of the return leg, Boeing carried out extensive ground testing to address the technical hitches encountered during Starliner’s ascent, then promised — both publicly and behind closed doors — that it could safely bring the astronauts home. In the end, NASA disagreed.

Asked whether he stood by that decision, NASA’s Stich said: “It’s always hard to have that retrospective look. We made the decision to have an uncrewed flight based on what we knew at the time and based on our knowledge of the thrusters and based on the modeling that we had.”

History of setbacks

Even without crew aboard, the stakes were high for Boeing, a century-old aerospace giant.

With its reputation already battered by safety concerns surrounding its commercial jets, its long-term prospects for crewed space missions hung in the balance.

Shortly after undocking, Starliner executed a powerful “breakout burn” to swiftly clear it from the station and prevent any risk of collision — a maneuver that would have been unnecessary if crew were aboard to take manual control if needed.

Mission teams then conducted thorough checks of the thrusters required for the critical “deorbit burn” that guided the capsule onto its reentry path around 40 minutes before touchdown.

Though it was widely expected that Starliner would stick the landing, as it had on two previous uncrewed tests, Boeing’s program continues to languish behind schedule.

In 2014, NASA awarded both Boeing and SpaceX multibillion-dollar contracts to develop spacecraft to taxi astronauts to and from the ISS, after the end of the Space Shuttle program left the US space agency reliant on Russian rockets.

Although initially considered the underdog, Elon Musk’s SpaceX surged ahead of Boeing, and has successfully flown dozens of astronauts since 2020.

The Starliner program, meanwhile, has faced numerous setbacks — from a software glitch that prevented the capsule from rendezvousing with the ISS during its first uncrewed test flight in 2019, to the discovery of flammable tape in the cabin after its second test in 2022, to the current troubles.

With the ISS scheduled to be decommissioned in 2030, the longer Starliner takes to become fully operational, the less time it will have to prove its worth.
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